This document constitutes Mendip District Council s pay policy statement for the year beginning 1 st April 2016.

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1 PAY POLICY FOR FINANCIAL YEAR This document constitutes Mendip District Council s pay policy statement for the year beginning 1 st April Introduction Section 38(1) of the Localism Act 2011 requires local authorities to produce an annual statutory pay policy statement. The pay policy statement must be formally approved at a Full Council meeting by the end of March each year, though it can be amended in-year with Full Council approval. The pay policy statement must be published on authority s website. Mendip District Council has a local arrangement for grades and salary bands, which covers all posts in the authority including the Chief Executive and s. Details of the current rates are available on the Recruitment page of the Council website. The Council s current pay and grading framework was originally adopted in 1989 when the Hay job evaluation system was introduced into the organisation. The grading structure was comprehensively reviewed and updated in 2001 and had minor changes made to it in To ensure consistency across the Council the grades for all job roles are determined through the Hay job evaluation system. This system provides an analytical approach to evaluating the job value, through allocating points to different components of the role, the total score of which equates to a grade within the Council s pay and grading structure. Scope The definitions of Chief Officer and Deputy Chief Officer to be covered by the pay policy statement are defined by the legislation. The Pay Policy Statement for Mendip District Council will apply to the following posts which collectively will be referred to as Senior Officers for the purposes of this statement: Chief Executive s (one of which includes the Monitoring Officer role and another which becomes Acting Chief Executive when the Chief Executive is not available).

2 1) Elements and levels of remuneration for Corporate Management Team Post Chief Executive Governance, Assets & Public Spaces (Monitoring Officer) Built Environment Regulatory Services Access to Services Salary plus fees and allowances Any bonus or performance related pay Other benefits Pension enhancement The Council s Section 151 (Finance) Officer role is not covered at present by an employee of the Council, but by a service arrangement with Somerset County Council and is therefore not included in this policy. 2) Remuneration on appointment a) Chief Executive The Chief Executive post is evaluated and paid at Grade SM1. The Leader of the Council is responsible for determining the actual remuneration rate to be offered for the post, after taking independent pay advice from South West Councils. b) s and all Other Employees The grade for the posts is SM3. The Council has a policy of recruiting at the bottom increment of the grade for the role. In certain circumstances an increased starting increment may be agreed, i.e. where the appointee brings with them a significant level of previous relevant experience for the role. 3) Increases and additions Annual cost of living adjustments are paid in accordance with nationally negotiated settlements under either Joint Negotiating Committee (JNC) or National Joint Council (NJC) agreements as applicable. In January 2015 there was a cost of living pay award made to all employees, that ensured that no employee received less than a 1% pa pay award covering 2014/15 and 2015/16.

3 a) Chief Executive The Leader of the Council shall determine the remuneration package prior to appointment, how salary progression and any annual pay reviews will be administered or calculated. Any other subsequent changes to the remuneration package will also be determined by the Leader. b) s Increments are awarded on an annual basis up to the top of the grade for the post. Any additional payments, e.g. additional increment awards, honoraria payments, responsibility allowances, will be determined by the Chief Executive. c) All Other Employees Increments are awarded on an annual basis up to the top of the grade for the post. Any additional payments must be agreed by the for the service area, including Honoraria payments which must meet the criteria as set out in the Honoraria Framework. 4) Performance Related Pay and Bonuses There is currently no performance related pay or bonus scheme in operation for any Officers of the Council. Introduction of such schemes will require the approval of the Chief Executive and the Leader. 5) Market Supplements a) Chief Executive/s Payment of market supplements must meet the conditions laid out in the Market Supplement Protocol. Prior to the award of any market supplements for Senior Officer posts, approval must be obtained from the Chief Executive for s and the Leader of the Council for the Chief Executive post. b) All Other Employees Payment of market supplements must meet the conditions laid out in the Market Supplement Protocol. 6) Overtime Payments Officers on grades M to G inclusive are eligible to receive payment for planned and authorised overtime. The salary for Officers at grade F and above takes into

4 account the requirement for working outside of normal hours so no overtime can be claimed. 7) Payments on Termination Any termination payments to Senior Officers and employees will comply with the current Redundancy Policy, which will have been approved by Cabinet. No additional termination payments will be made without the approval of the Chief Executive and Leader of the Council, this will include any Settlement Agreements, which may be subject to a confidentiality clause. 8) Re-employment after severance payment Cabinet approval would be required to authorise re-employment within the Council of a previously employed Senior Officer who had left with a severance payment and is seeking re-employment within the severance payback period. Cabinet will be required to approve any award of a contract for services to a Senior Officer who was previously employed by the Council. 9) Publication of Senior Officer Remuneration The remuneration of Senior Officers earning a salary of over 50,000 per annum is published on the in the annual Statement of Accounts. 10) Lowest Paid Staff The lowest salaries paid to employees in the authority are to those whose posts are on grade L; there are currently no posts at grade M, which is the lowest in the grade structure. The new National Living Wage legislation comes into effect on 1 April 2016 and Mendip will ensure that their salaries are compliant. Those on Apprenticeship training programmes are paid at the relevant apprenticeship rate according to level of qualification and progress. For those apprentices aged above 19, their salary is based against the National Minimum Wage. The relationship between the mean average pay of non senior staff and highest paid employees is described as the multiplier. For the Council this is 3.5 i.e. the top salary is 3.5 times that of the average of the non senior staff. The Council believes the current multiplier is a realistic relationship as it is determined by a rigorous job evaluation process linked to an even and progressive pay structure which effectively determines pay relative to job role. Should the multiplier between the average annual full time salary paid to non senior staff and the annual full time salary paid to the Chief Executive be greater than 10, this will be reported by the Leader of the Council to Full Council for consideration.

5 11) Election Payments Officers who undertake additional duties at elections, including the Chief Executive in his role as Returning Officer, receive additional payments for each election held according to the responsibility undertaken. These payments do not fall within the scope of this policy; they are made in accordance with Scales of Fees and Charges which are operated across Somerset in relation to County Council, District Council, Parish and Town Council elections and Parish Polls and by central Government in respect of parliamentary elections. Salary Details 2015 Lowest salary (including apprentices) Highest salary Mean salary Median salary 31531

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